GameStop: 2.3 million have registered interest in new console supplies [Updated]

Microsoft, meanwhile, predicts shortages amid "unprecedented" demand.

[Update: The original version of this story indicated that GameStop had said 2.3 million customers had expressed interest in the PS4 alone, which seemed clear to us from the context of the call transcript. However, a GameStop representative has since clarified to Ars that the number was meant to represent interest in both the PS4 and Xbox One. The below story has been rewritten with this clarification in mind. Ars regrets the error.]

Earlier this week, we noted that while Sony selling a million consoles in 24 hours was impressive, readers shouldn't read too much into a single day of sales data that might say more about the company's initial distribution capacity than the system's long-term demand. Now, retailer GameStop has released numbers giving a much stronger indication of just how many people are still clamoring for next-generation systems just before today's launch of the Xbox One.

The major chain, which operates over 6,600 locations worldwide (mainly in North America), said in an earnings call yesterday that its initial allocation of PS4 systems is completely spoken for. What's more, the retailer has logged 2.3 million customers on its "first-to-know" list seeking information on when more supply comes in for the Xbox One and PS4.

While GameStop's "first-to-know" list may have some overlap with customers that managed to get systems elsewhere, the number is the most concrete sign yet that strong sales for the new consoles will last past the holiday season rather than quickly tapering off after the expected initial sellout (see the Saturn, Dreamcast, original Xbox, GameCube, and even the PS3 for examples of such post-launch tapering). The huge number of interested potential buyers also jibes with other tidbits showing strong post-launch demand for the PS4, such as similar sellout reports from retailer Best Buy and thousands of eBay auctions with significant markups.

For its part, Sony expects to be able to keep stores supplied and ready to fill that demand through the holiday season and to meet worldwide sales targets of 5 million systems by the end of March. "[This is] the first platform launch that I’ve ever been involved with where we’ve had such a good production ramp up and a good sense of supply," Sony Computer Entertainment CEO Andrew House told Game Informer in a recent interview. "I think through the holiday season that we'll be in good supply."

Microsoft, on the other hand, says it's expecting difficulty in keeping retailers stocked through the end of the year. "There will be difficulty getting stock through until Christmas but we will do everything we can to accelerate that," Microsoft Xbox VP Phil Harrison told MCV.

Harrison also kept supply expectations low when in an talk with GamesIndutry.biz surrounding today's Xbox One launch. "I can only apologize in advance to anybody who is let down before Christmas," he said. "We don't want to lose a sale, clearly, and we'll work hard in our operations and our manufacturing supply chain and obviously with our retail partners to make sure we catch up as quickly as we can."

Harrison was quick to point to "unprecedented" pre-orders for the Xbox One as the main cause of any supply shortages and said the launch numbers for the system will be "significantly bigger than [Xbox] 360." Of course, we're going to have to wait a bit for some actual sales numbers before we can really evaluate those statements. All in all, though, it seems likely that we'll be seeing a lot of fights between angry parents scrambling for that last PS4 or Xbox One in the aisles of electronics stores this holiday season.

Kyle Orland
Kyle is the Senior Gaming Editor at Ars Technica, specializing in video game hardware and software. He has journalism and computer science degrees from University of Maryland. He is based in the Washington, DC area. Emailkyle.orland@arstechnica.com//Twitter@KyleOrl

GameStop Corp. (GME), the largest specialty retailer of video games, said its initial allocation of PlayStation 4 consoles sold out and that 2.3 million customers are waiting for new players from Sony Corp. (6758) AND Microsoft Corp. (MSFT)

“We still have over 2.3 million customers on the First to Know List, which indicates continued demand for months to come,” GameStop President Tony Bartel said on the call.

I imagine that is customers who did not get a pre-order for either system but are wanting one.

GameStop Corp. (GME), the largest specialty retailer of video games, said its initial allocation of PlayStation 4 consoles sold out and that 2.3 million customers are waiting for new players from Sony Corp. (6758) AND Microsoft Corp. (MSFT)

“We still have over 2.3 million customers on the First to Know List, which indicates continued demand for months to come,” GameStop President Tony Bartel said on the call.

I imagine that is customers who did not get a pre-order for either system but are wanting one.

Without numbers a lot of this is meaningless. What does Microsoft consider unprecedented? Is it just higher than 360? Is it close to the PS4? Are the limited supplies going to be similar to the PS4 supplies , more? Less? Too many subjective terms!

Curious: Are stores keeping display units, or selling them off too if there's that much demand? I was running through Walmart the other day and noticed a hole where what looked like a PS4 display unit should have been. Don't plan on buying soon, but I am curious to at least try the controllers for each and see how they feel. I currently can't stand PS controllers and wonder if the PS4 will change my mind.

GameStop Corp. (GME), the largest specialty retailer of video games, said its initial allocation of PlayStation 4 consoles sold out and that 2.3 million customers are waiting for new players from Sony Corp. (6758) AND Microsoft Corp. (MSFT)

“We still have over 2.3 million customers on the First to Know List, which indicates continued demand for months to come,” GameStop President Tony Bartel said on the call.

I imagine that is customers who did not get a pre-order for either system but are wanting one.

wow, that completely changes the article.

Yeah, sounds like it is an expression of interest, as opposed to expression of actual intent to put money down. Doesn't change the fact that it sounds like both will see some very healthy demand through the holidays. Granted, I wouldn't be surprised at all if Sony does manage to push that amount by the end of the year.

Curious: Are stores keeping display units, or selling them off too if there's that much demand? I was running through Walmart the other day and noticed a hole where what looked like a PS4 display unit should have been. Don't plan on buying soon, but I am curious to at least try the controllers for each and see how they feel. I currently can't stand PS controllers and wonder if the PS4 will change my mind.

Display Units cannot function when separated from the display base so this is doubtful. Also getting one or two extra sales is near meaningless to a store like that and does not offset the draw of the display unit.

Display units get punished more than anything so I would guess the unit was non functional and was being replaced but that's just a guess.

That said, the Xbox 360 sold less than the PS3, even though the Xbox 360 crushed it in America. Sony sells world wide.

This time around, it looks like sony will beat MS in America as well though. That would really leave the Xbox 1 in the dust.

While I agree and I am a huge Sony fan, I don't think you are accounting for the possible XBox One purchases for media functionality that might balance things out (I honestly do not know the demand for this so we can't tell yet).

GameStop Corp. (GME), the largest specialty retailer of video games, said its initial allocation of PlayStation 4 consoles sold out and that 2.3 million customers are waiting for new players from Sony Corp. (6758) AND Microsoft Corp. (MSFT)

“We still have over 2.3 million customers on the First to Know List, which indicates continued demand for months to come,” GameStop President Tony Bartel said on the call.

I imagine that is customers who did not get a pre-order for either system but are wanting one.

We're looking into this and updating the story. Seems the source we used may have been mistaken.

I imagine that is customers who did not get a pre-order for either system but are wanting one.

wow, that completely changes the article.

I've read on several sites that the Bloomberg text was changed. First, note the page title of the Bloomberg article: it still says "http://www.bloomberg.com/news/2013-11-21/gamestop-says-2-3-million-customers-waiting-for-ps4.html". Many other sites are still reporting that the 2.3 million number is specific to the PS4.

The speculation I read was that the Bloomberg article was changed to point out that there is strong demand for both consoles, but that the 2.3 million number really is specific to the PS4.

(Edit: To be clear, other than pointing out the Bloomber article title stills says PS4, I have no insight into the actual truth of the matter.)

I pre-ordered a PS4 with extra controller to flip on Craig's List. I haven't even received a single query after a week and I was only asking a $125 premium; not even a low-ball insulting offer. I wonder if interest will pick up closer to Christmas when parents start getting desperate? Mustn't allow Junior to become angry that he didn't get the new shiny and burn down the school while acting out.

Buying to flip (so an extra, or a console you don't actually want) is always risky. I recall PS3s wound up going for less than MSRP for a bit.

Yeah, Christmas rush, but if they can push out enough that they sit on shelves, parents won't pay a premium. We should know in about two weeks what the picture looks like.

Sony needs a more contemporary reimagining of their integrated logistical capability. Forward-looking companies invest in incremental gaming hardware. At base level, this just comes down to global asset paradigm shifts. It's time for Sony to revamp and reboot their balanced organisational concepts.

Well I'm not sure how much waiting people are doing on Xbox One, there are 15 Target stores within a 20 mile radius of me in Brooklyn that currently have Xbox One's in stock.

There are 0 Target stores anywhere near me that have Playstation 4's available.

You're comparing a console that went on sale a few hours ago to one that's been selling for a week? Wow. Apples and tire irons there. Also, store stock indicators aren't real time. Have you ever checked then gone to the store only to find they don't have any?

Checking Targets around my suburban Detroit area shows no PS4s in stock and 13 stores with and 7 sold-out of XBones. They could be sold out everywhere by dinner FWIW.

I imagine that is customers who did not get a pre-order for either system but are wanting one.

wow, that completely changes the article.

I've read on several sites that the Bloomberg text was changed. First, note the page title of the Bloomberg article: it still says "http://www.bloomberg.com/news/2013-11-21/gamestop-says-2-3-million-customers-waiting-for-ps4.html". Many other sites are still reporting that the 2.3 million number is specific to the PS4.

The speculation I read was that the Bloomberg article was changed to point out that there is strong demand for both consoles, but that the 2.3 million number really is specific to the PS4.

(Edit: To be clear, other than pointing out the Bloomber article title stills says PS4, I have no insight into the actual truth of the matter.)

GameStop Corp. (GME), the largest specialty retailer of video games, said its initial allocation of PlayStation 4 consoles sold out and that 2.3 million customers are waiting for new players from Sony Corp. (6758) AND Microsoft Corp. (MSFT)

“We still have over 2.3 million customers on the First to Know List, which indicates continued demand for months to come,” GameStop President Tony Bartel said on the call.

I imagine that is customers who did not get a pre-order for either system but are wanting one.

Here is a quote straight from the transcript of the call:

"In addition to selling through all of our reservations and some additional allocation that we have received from Sony, we still have over 2.3 million customers on the first-to-know list, which indicates continued demand for months to come. Also, a survey of our PowerUp Reward members shows that 2/3 of those survey expect to own a PS4 or Xbox One within the next 12 months."

So it seems that Bloomberg is wrong when it lumps Xbox One in with the 2.3M number. That said, we've updated the story to reflect some caveats about the "first-to-know" list being different from unfulfilled pre-orders. Thanks for the notice.

Curious: Are stores keeping display units, or selling them off too if there's that much demand? I was running through Walmart the other day and noticed a hole where what looked like a PS4 display unit should have been. Don't plan on buying soon, but I am curious to at least try the controllers for each and see how they feel. I currently can't stand PS controllers and wonder if the PS4 will change my mind.

Display units are typically owned by the manufacturer or a third party responsible for promoting associate awareness of the merchandise and maintaining the display (putting in new demo discs, etc.) The physical stand and security mechanisms are typically shipped out in advance and assembled when the retailer is told to assemble it. Then they wait for a representative to come in and install the console.

They are not usually the retailer's property to sell. Though Walmart would sell its own associates if it could...

GameStop Corp. (GME), the largest specialty retailer of video games, said its initial allocation of PlayStation 4 consoles sold out and that 2.3 million customers are waiting for new players from Sony Corp. (6758) AND Microsoft Corp. (MSFT)

“We still have over 2.3 million customers on the First to Know List, which indicates continued demand for months to come,” GameStop President Tony Bartel said on the call.

I imagine that is customers who did not get a pre-order for either system but are wanting one.

Here is a quote straight from the transcript of the call:

"In addition to selling through all of our reservations and some additional allocation that we have received from Sony, we still have over 2.3 million customers on the first-to-know list, which indicates continued demand for months to come. Also, a survey of our PowerUp Reward members shows that 2/3 of those survey expect to own a PS4 or Xbox One within the next 12 months."

So it seems that Bloomberg is wrong when it lumps Xbox One in with the 2.3M number. That said, we've updated the story to reflect some caveats about the "first-to-know" list being different from unfulfilled pre-orders. Thanks for the notice.

Thanks for confirming it. I think Bloomberg was one of the first to report on the earnings call, which a lot of sites misquoted. But they would have had quoted a misquote.

Just to think that this is for North America only also. Wait until the PS4 launches in Japan in Feb. More time to get more units on the market. I think Sony may hit their 5 million by March goal.

In related news, the post office received 2.3 million flyers from GameStop corporate HQ beginning with the message "if U want to C you're PS4 alive again, send the following dollar amount..." Formatted in a font that looks like letters clipped from newspapers.

That said, the Xbox 360 sold less than the PS3, even though the Xbox 360 crushed it in America. Sony sells world wide.

This time around, it looks like sony will beat MS in America as well though. That would really leave the Xbox 1 in the dust.

While I agree and I am a huge Sony fan, I don't think you are accounting for the possible XBox One purchases for media functionality that might balance things out (I honestly do not know the demand for this so we can't tell yet).

Well, I own an Xbox 360 and not a PS3 and I doubt that so many will buy for media functionality. Most of its advanced functionality is already available in other ways, and will be on DVRs shortly.

Its a cool idea to push DVR a step further, but that's not going to stay on consoles. And people want whole home solutions from one box.

As a former EB Games worker who was on-hand for the 360 launch (what a nightmare), I can tell you that this number may very well be internally inflated. We had two GameStops and two EB Games (including mine) in the area prior to the merger. We had numerous customers openly admit that they had pre-ordered at multiple locations in hopes that they would be in the first or second wave in at least one of them. To my knowledge, there were no centralized or software-based checks to try and curb that behavior, either.

Considering that this is "interest" and not actual pre-orders, and it sounds like it is interest in a particular store's stock, that basically encourages people to go to every store under the sun and get on the list.

Given that years have passed since then, I would hope that this sort of information is centrally stored and was checked for duplicates, though I doubt it. Furthermore, there's nothing stopping customers from giving multiple phone numbers from family members and the like to get around any sort of "one per customer" limitation that might exist.

I'm not naïve enough to think that demand isn't sky-high. I'm just saying that this number is probably about as reliable as word of mouth.

GameStop Corp. (GME), the largest specialty retailer of video games, said its initial allocation of PlayStation 4 consoles sold out and that 2.3 million customers are waiting for new players from Sony Corp. (6758) AND Microsoft Corp. (MSFT)

“We still have over 2.3 million customers on the First to Know List, which indicates continued demand for months to come,” GameStop President Tony Bartel said on the call.

I imagine that is customers who did not get a pre-order for either system but are wanting one.

Here is a quote straight from the transcript of the call:

"In addition to selling through all of our reservations and some additional allocation that we have received from Sony, we still have over 2.3 million customers on the first-to-know list, which indicates continued demand for months to come. Also, a survey of our PowerUp Reward members shows that 2/3 of those survey expect to own a PS4 or Xbox One within the next 12 months."

So it seems that Bloomberg is wrong when it lumps Xbox One in with the 2.3M number. That said, we've updated the story to reflect some caveats about the "first-to-know" list being different from unfulfilled pre-orders. Thanks for the notice.

Thanks for confirming it. I think Bloomberg was one of the first to report on the earnings call, which a lot of sites misquoted. But they would have had quoted a misquote.

Just to think that this is for North America only also. Wait until the PS4 launches in Japan in Feb. More time to get more units on the market. I think Sony may hit their 5 million by March goal.

Isn't it nice they can just print money like that? For some reason I started thinking about the Ars articles about the electronic trade super computers who buy and sell stock based on tons of information located on the internet. Reports like that have to effect Sony stock in a positive way.

Meanwhile, the Wii U stumbles down a dark, dirty alley, whiskey bottle in hand. It doesn't remember the last time it shaved, and its mouth tastes like old socks filled with rotting meat. Bitterly, it sobs, "I coulda been a contender!"

Meanwhile, the Wii U stumbles down a dark, dirty alley, whiskey bottle in hand. It doesn't remember the last time it shaved, and its mouth tastes like old socks filled with rotting meat. Bitterly, it sobs, "I coulda been a contender!"

Its becoming the Gamecube again. Great titles will release on it, just not nearly the momentum and interest that the Wii had. Marketing and communication has not been enough to inform people what the Wii U is.

Kyle did a good job of disecting the quote, and coming to the conclusion that he did.

This morning I reached out to the author of the Bloomberg article-in-question, Cliff Edwards, and asked for the source of his questionable correction. He has responded with the following, "GameStop corrected that the number was for both systems." I happen to have access to the Bloomberg Terminal to see the orginal story and the corrected. The note he left on the Terminal when he updated his own article was ("Company corrects waiting list in first paragraph.") . This type of confirming won't win any prizes, but here is it none-the-less.

Meanwhile, the Wii U stumbles down a dark, dirty alley, whiskey bottle in hand. It doesn't remember the last time it shaved, and its mouth tastes like old socks filled with rotting meat. Bitterly, it sobs, "I coulda been a contender!"

Its becoming the Gamecube again. Great titles will release on it, just not nearly the momentum and interest that the Wii had. Marketing and communication has not been enough to inform people what the Wii U is.

It's not looking good for even that. Wii U is trending well below Gamecube sales...

It's hard to believe people with money can't spend it due to production managers who are buffoons. Thanks Microsoft, but i"m looking at a PS/4 now.

Err, all we have are expectation statements from both companies so far. Give it a week or two before you do anything rash. Neither gave out any actual numbers on supply figures during the Christmas season. The Microsoft statement could've meant "we are internally expecting 5 million people wanting our console during this periord, and only expect to be able to produce 4 million." Also, Sony's figures dont guarantee there'll be a PS4 on every store's shelf, just that they'll try to keep supplying them as quick as they can.

Most are fairly accurate in my experience. I think this comes from when companies updated the stock count daily (so its only accurate as of this morning), which is not the current standard.

Maintaining a real-time inventory system is surprisingly complicated and for a high-volume store or large-scale retail enterprise (think Target, Best Buy, etc.), would require ridiculous transactional throughput to a centralized data warehouse, otherwise the website would have to query the inventory for each, individual store in the list that you are viewing.

Assuming that the website is not using the ridiculously inefficient method of individually querying- at a rough estimate- the 10 closest stores to your location, then the other option is querying a data warehouse (DW.) That means the following steps have to take place for "real-time" accuracy:

1. Morning stock checks are done quickly and accurately2. Once a truck has been received (for the non-retail people out there, that means the truck's contents have been checked against the shipping manifest and any corrections have been made prior to entering it into inventory), then the stock must be pushed to the floor for stores that keep their merch out there instead of the stockroom.3. Web sales for pickup from store need to either come out of a separate inventory pool or need to be earmarked as unavailable the instant a customer goes to the checkout page and returned to the inventory if the session expires or the customer removes it from their cart.4. All in-store transactions must hit both the in-store inventory management system as well as the Data Warehouse in as close to real-time as they can get. Considering the sheer quantity of transactions per minute a big box retailer can do, that is a lot of data flowing through the network.

There are quite a number of right ways to do this and a whole lot of wrong ways. Most of the right ways are incredibly expensive and, while the right thing to do, probably too expensive for a company with lean operating budgets.